How the global tax reform will affect Russia, how much the budget is losing due to illegal cigarettes and what can be done about this when the firefighting air squadron, which Putin spoke about, appears in the country – in the RBC review
What are the risks of the global tax reform for Russia
Representatives of large Russian businesses have begun to prepare for a global corporate tax reform, which is due to take effect in 2023. The Russian Union of Industrialists and Entrepreneurs (RSPP) analyzed what risks it would bring.
- Global tax reform is being carried out under the auspices of the Organization for Economic Cooperation and Development (OECD) and the G20 (G20). It provides, among other things, the introduction of a tax on the global profits of transnational companies in the amount of 15%, which companies will begin to pay in each jurisdiction.
- In Russia, the base income tax rate is 20%, but in some cases there are incentives that lower the effective rate below 15%. The key risk that the RUIE warns about is that after the reform, preferential national income tax regimes may lose their meaning and Russia will lose some of its opportunities for tax incentives for investment.
How much Russia loses on the sale of illegal cigarettes
Due to the large volumes of illegal tobacco products, the Russian budget has lost 295.6 billion rubles in five years, the Accounts Chamber calculated. Of these, 246.3 billion rubles. accounted for the shortfall in tobacco excise tax, and another 49.3 billion rubles. – for VAT that could have been paid. The share of illegal products in Russia has grown almost tenfold over five years, from 1.1% to 10.7%. That is, the excise tax is not paid from every tenth pack sold in Russia.